(Reuters) – Former U.S. media executive Edgar Bronfman Jr. is open to having Shari Redstone stay involved with Paramount Global if its special committee accepts his union’s offer to buy out the company’s controlling shareholder, National Amusements, CNBC reported on Friday.
On Wednesday, Bronfman beefed up his bid for Paramount, offering $6 billion for National Amusements and a minority stake in the media conglomerate.
The rival bid threatens to scupper the takeover plan by tech entrepreneur David Ellison and his independent studio Skydance Media.
Paramount Chairman Bronfman thanked Redstone for her “continued support” and “open dialogue” in the bidding process, which does not describe an ongoing role for her at the company, according to an Aug. 19 letter to Paramount’s special committee seen by Reuters.
The decision on whether to continue her involvement in Paramount ultimately rests with Redstone, said one person familiar with the matter. Bronfman previously allowed Sidney Sheinberg, chairman of MCA Entertainment Group, to stay on after Bronfman took control of the company in 1995.
A Redstone spokesman could not immediately be reached for comment. Bronfman did not respond to an email seeking comment.
If Paramount, which is controlled by the Redstone family company, accepts an offer that Skydance does not accept, Paramount will have to pay a $400 million separation fee.
Paramount and its board committee declined a Reuters request for comment, while National Amusements and Bronfman did not immediately respond.
The report added that Ellison, CEO of Skydance Media, also spoke with Redstone about her future with the company.
Paramount and Skydance Media signed a merger deal in early July, which included a 45-day “shopping” period to solicit and consider other deals.
Paramount said this week that a special committee of the board of directors has extended the deadline for a “spot shopping” period from Aug. 21 to Sept. 5 to evaluate Bronfman’s offer.
Skydance Media has accused Paramount Global’s special committee of violating the terms of the deal by extending the time period in which it could communicate with other bidders, The Wall Street Journal reported Thursday.
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